Eargo, the medical device company behind "virtually invisible" hearing aids, went public Friday in a bid to radically expand the market for hearing assistance.
"You don't have to be an old person," CEO Christian Gormsen told Cheddar. "You don't have to look like an old person. You don't have to go into a clinic."
The San Jose, California-based company began trading Friday on the Nasdaq under the ticker symbol "EAR" at the starting price of $18 per share. The stock price quickly doubled at the start of trading, hitting more than $38 by mid-afternoon.
"We want to be an industry innovator," he said. "Being a public company, first of all, helps us drive more awareness for hearing loss, which is critical, but it also gives us access to this amazing global investor base that we see as a great strength in terms of getting even better."
Gormsen added that 43 million Americans face hearing loss, while only a quarter do anything about it. By offering a less conspicuous hearing aid, the goal is to draw more of those people into the market.
"What's unique about Eargo is really that people don't want traditional hearing aids," he said. "We've developed a revolutionary medical technology device that actually sits invisibly behind your ear."
In addition, Eargo plans to grow its telephone and online marketing in an effort to reach consumers directly, rather than through a hearing clinic, where much of the hearing aid industry is based.
Gormsen also noted that this approach is especially important during the coronavirus pandemic.
"We've always been offering people to get hearing aids from the comfort, and now also from the safety, of their homes," he said.
The capital raised from the IPO will largely go into innovation, said Gormsen, given that the company is already well-funded.
"There's so much more we can do to make hearing aids even better in the future," he said.
Stephen Kates, Financial Analyst at Bankrate, joins to discuss the Fed’s 25-basis-point rate cut, inflation risks, and what it all means for consumers and marke
Big tech earnings take center stage as investors digest results from Alphabet, Meta, Microsoft, Amazon, and Apple, with insights from Gil Luria of D.A. Davidson
Disney content has gone dark on YouTube TV, leaving subscribers of the Google-owned live streaming platform without access to major networks like ESPN and ABC. That’s because the companies have failed to reach a new licensing deal to keep Disney channels on YouTube TV. Depending on how long it lasts, the dispute could particularly impact coverage of U.S. college football matchups over the weekend — on top of other news and entertainment disruptions that have already arrived. In the meantime, YouTube TV subscribers who want to watch Disney channels could have little choice other than turning to the company’s own platforms, which come with their own price tags.
President Donald Trump said he has decided to lower his combined tariff rates on imports of Chinese goods to 47% after talks with Chinese leader Xi Jinping on curbing fentanyl trafficking.
Universal Music Group and AI platform Udio have settled a copyright lawsuit and will collaborate on a new music creation and streaming platform. The companies announced on Wednesday that they reached a compensatory legal settlement and new licensing agreements. These agreements aim to provide more revenue opportunities for Universal's artists and songwriters. The rise of AI song generation tools like Udio has disrupted the music streaming industry, leading to accusations from record labels. This deal marks the first since Universal and others sued Udio and Suno last year. Financial terms of the settlement weren't disclosed.
